Risk Management
Annual Report
Fiscal Year Ended June 30, 2007

COCONINO
MOHAVE

APACHE
NAVAJO

YAVAPAI

LA PAZ

MARICOPA
COUNTY

GILA

GREENLEE

PINAL

GRAHAM

YUMA

PIMA
COCHISE

SANTA CRUZ

MARICOPA COUNTY
RISK MANAGEMENT ANNUAL REPORT
FISCAL YEAR 2006-07

TABLE OF CONTENTS

I.

EXECUTIVE SUMMARY

II.

CLAIMS DIVISION

III.

SAFETY DIVISION

IV.

ENVIRONMENTAL DIVISION

V.

ADMINISTRATIVE DIVISION

VI.

STATISTICS AND COVERAGE

RISK MANAGEMENT ANNUAL REPORT
EXECUTIVE SUMMARY

Presented herein is the Maricopa County Risk Management Annual Report, for the fiscal year July 1,
2006 through June 30, 2007.
This report contains summaries of the fiscal year’s losses and costs for Maricopa County’s auto
liability, auto physical damage, general liability, medical malpractice, property damage, workers’
compensation, and unemployment exposures. This report, along with ongoing quarterly reports to
County departments during the year, are intended to assist departments in recognizing the nature and
extent of their losses, and to lead departments to consider implementation of effective loss control
and prevention programs.
Structure and Mission
As of June 30, 2007, the Risk Management Department completed its 26th year administering the
County’s self-insurance program. Risk Management’s mission is to provide loss prevention and
control programs and direction, insurance, environmental and claims management services to
Maricopa County departments, districts, and Trust members to reduce or eliminate losses. Its vision
is to be recognized as a leader, and to be relied upon for a Countywide risk management philosophy
and culture. Risk Management’s primary activities are:
•
•
•
•
•
•
•
•
•

Risk consulting
Insurance procurement above self-insured retention levels
Maricopa County Self-Insured Trust Fund management and financing
Administration and monitoring of third party administrators’ adjusting
of workers’ compensation and unemployment claims
Investigation and disposition of casualty and property claims and lawsuits
Safety training, reporting, and compliance
Loss control programs
Environmental investigation, remediation, and reporting
Contractual indemnification and insurance requirement language drafting and review

The Risk Management Department is divided into three operating divisions, Claims, Safety, and
Environmental, and one Administration division. Highlights for each division are contained in this
report. The Department strives to accomplish its mission with assistance and direction from the
Maricopa County Board of Supervisors, the Maricopa County Self-Insured Trust Fund Board of
Trustees, and the Office of the County Attorney. The Risk Manager reports to the Chief Financial
Officer of Maricopa County.

I-1

Self-Insured Trust Fund
Arizona law (ARS § 11-981) authorizes Maricopa County to self-insure, procure insurance from any
insurer authorized by the State of Arizona Department of Insurance, or both. Insurance (defined in
Title 20 Arizona Revised Statutes) includes, but is not limited to, auto liability, auto physical
damage, general liability, medical malpractice, property, workers’ compensation, and
unemployment insurance.
Upon establishment of a self-insurance program, Maricopa County is required to designate a Trust
Administrator (Risk Manager), and establish a Trust. The Trust is funded by an allocation of funds
from General Fund and Non-General Fund departments and Special Districts, or such other funding
techniques permitted by state statute and authorized by the Trust’s Board of Trustees.
A Board of Trustees manages and directs the Trust’s activities and affairs. Trustees must be United
States citizens and residents of Maricopa County, and are appointed by the Maricopa County Board
of Supervisors (BOS) and County Manager. During FY06-07, the following individuals were
members of the Board of Trustees:
Trustee District/Appointment

Trustee

BOS District One
BOS District Two
BOS District Three
BOS District Four
BOS District Five
BOS Chairman
County Manager

Michael Liburdi
Joel Sterrett
Vacant
David Tierney, Chairman
Richard “Joe” Lugo
BOS Chairman
Tom Manos
FY06-07 Results

Maricopa County enjoyed mixed results this fiscal year in the risk/exposure area. Total dollars paid
plus open reserves were $5,863,201, down 58.7% for this fiscal year compared to the prior fiscal
year. However, the Cost of Risk increased slightly. Risk Management’s costs increased $2,807,709
(9.9%), due primarily to continuing increases in claim payments and legal expenses, resulting in the
Cost of Risk (Risk Management’s costs compared to total County and MIHS expenditures) coming
in at an unacceptable 1.24%. (Note that the number of claims filed this fiscal year decreased 1.5%,
from 1,505 to 1,483. This claims figure represents the number of claims filed in the fiscal year. This
figure is not based on event date, and does not include unemployment or workers compensation
claims.) The County realized $2,526,604 in net savings in FY06-07 through the use of in-network
medical providers and a medical bill review service, and collected $321,352 through subrogation,
restitution, and deductible recovery efforts (the Claims and Environmental divisions, and our Third
Party Administrator for Workers’ Compensation). These mixed results need to be viewed in light of
the County’s growth in the number of people served within the County and the noted number of
claims filed.

I-2

Maricopa County continues to be one of the fastest growing counties in the nation with a population
over 3.8 million. It is the 4th most populous County in the United States, larger in population than
21 states, and larger geographically than 7 states. The County continues to enjoy a significant
growth rate in population. Such size and growth, while economically positive, has resulted in the
noted increase in the number of claims. Risk Management’s emphasis on responsible claim
handling and a strong proactive loss prevention and safety program is designed to keep this increase
to a minimum.
The number of Maricopa County and MIHS employees varies from month to month. For FY05-06
and FY06-07, the numbers of actual positions were 16,607 and 18,563, respectively. (Note that we
are using “actual positions” not “actual budgeted positions” as we have used in the past.) Workers’
compensation claims with an event date in FY05-06 were 1,113, while Workers’ Compensation
claims with an event date in FY06-07 were 1,374. (Note, here we use event dates for these claims as
these figures better reflect safety issues within the fiscal year.) This reflects an increase in the
number of actual positions of 11.8% over the previous fiscal year, and an increase in the number of
workers’ compensation claims of 23.5% over this period. This highlights safety concerns that will
be addressed in the coming fiscal year.

I-3

Cost of Risk
Cost of Risk is a comparison of the County's expenditures of the risk management program to the
County’s overall expenditures in the fiscal year. The effectiveness of a risk management program
can be reflected in this comparison since the cost of a risk management program includes paid
claims (amounts paid in the fiscal year without regard to the year the claim arose), insurance
premiums, safety and loss control programs, and operational and administrative expenses, against
total County's expenditures. During the past three fiscal years, Cost of Risk for the County has
increased from 0.94% to the present 1.24%. This reflects an unacceptable increase in this measure.
Risk Management is committed to reducing this measure to below 1%.
FY04-05

FY05-06

FY06-07

Claims and Premiums
Auto Liability

$333,947

$565,241

$1,275,627

General Liability

$2,398,938

$3,808,717

$4,072,737

Medical Malpractice

$1,318,214

$3,439,084

$4,242,501

$292,481

$508,957

$1,169,794

$4,064,099

$3,857,860

$3,756,153

$776,861

$776,128

$633,685

$4,191,010

$4,370,784

$4,308,288

$13,375,550

$17,326,771

$19,458,785

$6,403,302

$8,039,308

$8,407,981

Property/Auto Physical Damage
Workers' Compensation
Unemployment
Premiums
Subtotal
Other Costs
Legal Expenses
Actuary Fees

$42,253

Broker Fees

$145,000

$93,488

$145,000

Consulting and Management Fees

$150,825

$179,516

$284,036

Claims Administration Service Fees

$394,527

$470,081

$556,856

Workers’ Compensation Taxes

$526,586

Administrative
Subtotal
Total Risk Management Costs
Total County Expenditures

$1,586,192

$2,325,865

$1,821,241

$8,679,846

$11,108,258

$11,783,953

$22,055,396

$28,435,029

$31,242,738

$2,353,876,507

$2,322,075,397

$2,529,353,568

0.94%

1.22%

1.24%

TOTAL COST AS A PERCENTAGE
OF COUNTY EXPENDITURES
Notes:

1.
2.
3.
4.

Paid claims represents the amount paid in the fiscal year regardless of occurrence date and
does not include Reported But Not Paid (RBNP) or Incurred But Not Reported (IBNR) reserves.
Amounts as valued on June 30, 2007, as reported in the Advantage Financial System.
Total County Expenditures includes Maricopa County Special Health Care District (d/b/a MIHS) as
reported in the MIHS Audited Financial Statements on June 30, 2007.
Actuary Fees and Workers’ Compensation Taxes are listed separately in FY06/07. In previous years, these
were included in the Administrative line item.

I-4

Acknowledgment
The Risk Management Department would like to thank the Maricopa County Board of Supervisors,
Elected Officials, County Manager, Chief Financial Officer, Self-Insured Trust Fund Board of
Trustees, County Attorney’s Office, County departmental management, employees, and volunteers
for their demonstrated interest in reducing claims and lawsuits, and their commitment to safety.
Respectfully submitted,

Peter J. Crowley
Risk Manager
Bill Warren, Assistant Risk Manager, Safety Division
Ted Howard, Manager, Claims Division
Samantha Wright-Sprague, Manager, Administration Division
Rita Neill, Manager, Environmental Division
Norma Vega, Administrative/Insurance Coordinator
Michelle Black, Accountant
Jenny Durda, Information Specialist
and the entire Risk Management Staff
Notes:

For presentation purposes only, the dollar amounts and associated percentages in all of the charts and tables
presented herein, have been rounded to the nearest whole dollar or percent.

I-5

CLAIMS DIVISION
The Claims Division of Risk Management handles all property and liability claims filed against
Maricopa County and its employees. The Division is staffed with five full time adjusters, a
manager, and support staff. In addition to handling the claims described above, the Division
oversees the adjustment of workers’ compensation and unemployment claims by third party
administrators. These claims are handled by Pinnacle Risk Services and Talx Employer
Services.
Claims are investigated and evaluated, then either paid or denied on their merits. Litigated
claims are assigned to either the County Attorney’s Office or outside counsel. The Division
works with assigned attorneys to obtain the most favorable result possible for the County. We
are committed to settling claims owed at a fair and reasonable amount while defending claims
without merit.
FY06-07 Summary
The Claims Division handled 1483 new claims in FY06-07, a very slight decrease over the
previous fiscal year. This decrease in new claims is the first since FY01-02, a year in which the
Division handled 742 new claims. The County has otherwise experienced a significant upward
trend since then. Due to the efforts of the Claims Division, the County continues to realize
substantial savings from its property and liability exposures. The Division is committed to work
to further improve in these areas and help reduce the cost of risk to the taxpayers of Maricopa
County.
In addition to handling claims, the Division provides the following services to the County:
• Subrogation, restitution, and deductible recovery. In FY06-07, the Division collected
$321,352.70.
•

Consultation services. We report to and consult with County departments on coverage
issues, pending claims, and litigation. This is done as both an informational tool and as a
means to find ways to reduce claims or exposures.

•

Review and management of the third party administrator providing adjustment of
workers’ compensation claims for County employees. For FY06-07, 1377 worker’s
compensation claims were filed by County employees. In addition to adjustment of these
claims, Pinnacle Risk Management Services and its affiliated vendors conduct bill
reviews, and employ discounts available to the County for participation in a PPO
network. As a result, the County has realized significant savings in its worker’s
compensation exposure. The most recent data available indicates that the County paid
$124 per employee in compensation benefits for FY06, far less than other Counties
comparable by size of workforce. Further, the County realized a savings of
$2,526,604.55 in medical expense as a result of bill review.

•

Review of indemnity and insurance language in County contracts.

•

Oversee outside contractors providing automobile and property appraisal services,
vehicle repair services, and structured settlement services to the County.

•

Coordinate recovery for County agencies from our excess property and liability insurance
policies.
II-1

SAFETY DIVISION
The primary objective of the Maricopa County Safety & Loss Control Programs is to protect the
County against losses which would significantly affect our personnel, operation, property,
budget, and ability to fulfill our responsibilities to the public. Objectives of the Safety Division’s
programs are, on behalf of management, to direct all efforts toward reducing occupational and
operational risks that can threaten the continuity of the service we provide and to maintain
budget integrity. These objectives can be accomplished by:
1.
2.
3.
4.

Full management support of our safety policies.
Maintaining an effective, comprehensive safety program.
Identifying potential risks and hazard awareness.
Training employees in safe work practices.

In reviewing departmental safety performance, workers compensation data this fiscal year,
claims showed a significant increase of 23 percent over last year. (1113 claims in FY05-06, and
1374 claims in FY06-07, see page VI-3 of the statistics and coverage section). Although the
number of claims increased, most were less severe and workers compensation payments and
reserves (see page VI-1 of the statistics and coverage section) were decreased from $4,632,215 in
FY05-06 to $3,557,493 in FY06-07, a $1,074,722, or 23 percent, reduction in cost.
Injury Incident Rates
8

6

5.8

5.5

4

4.6

4.0

3.9

01

02

5.0

3.7

2

0
MC Inj Inc Rate

03

04

04-06 Inc Year Avg

05

06

07

Linear (MC Inj Inc Rate)

Working to improve workplace safety and ensure OSHA compliance, the Division:
•

Received the 2007 Achievement Award from the National Association of Counties for
the Commercial Drivers and Equipment Training Programs.

•

Conducted a countywide four-day Employee Safety Fair and Equipment ROADEO, with
500 employees participating in 93 Safety Classes along with events testing operator skills
and knowledge of equipment operations.

Safety is a corporate effort! As Maricopa County continues to develop its future strategies in
safety management systems, it is necessary that each level of management must take a proactive
role in safety development. Management commitment and front line supervision accountability
is the key to sustaining the safety process and reducing unsafe work practices.

III-1

ENVIRONMENTAL DIVISION
The Environmental Division of Risk Management conducts remedial investigations and takes
action to minimize County environmental liability as determined by law, regulation, statute,
and/or court order. The Division provides leadership in the area of pollution prevention and
environmental management, and has developed a proactive assessment and action process that
mitigates environmental liabilities, saving the County in the cost of remedial action and
regulatory penalties. Possible environmental liability costs of known sites have been reduced
from previous estimates of over $500 million for FY95-96, to approximately $39 million for
FY06-07.
This fiscal year the Division:
•

Completed Phase I and II environmental characterizations for 5 former landfills –
Aguilla, Avondale, Gila Bend, Hassayampa, and New River.

•

Completed Liability Study for all 10 County closed landfills to determine current and
future County liability at these sites.

•

Continued groundwater monitoring at the New Cave Creek Landfill in order to determine
location for new monitoring well. Negotiated with land owners for access to install new
well.

•

Began preparation of new Stormwater Pollution Prevention Plans (SPPPs) for 15 County
properties. Began preparation of new Spill Prevention Containment and Countermeasure
Plans for 7 County sites.

•

Completed Phase I environmental assessments for 3 facilities. Completed assessments for
indoor air quality (8), asbestos (6) and mold (13) at additional facilities.

•

Assisted Parks and Recreation, Facilities Management, Superior Courts, Real Estate,
MCSO, MCDOT, and Air Quality in preparing Requests for Proposals for environmental
studies, indoor air quality, asbestos surveys, and air permit reviews.

•

Participated in Hassayampa Superfund Steering Committee.

•

Continued environmental monitoring of a former County landfill. Replaced passive
landfill gas vents at the site. Reviewed drainage study prepared for site.

•

Worked with APS to gain access to County property to conduct USEPA mandated
sampling to characterize contamination from APS facility.

•

Continued to provide sound environmental compliance information to requesting
departments.

The Division recognizes that environmental risks are capable of being managed through risk
control and prevention measures. These measures include separation of hazardous materials,
effective pollution prevention and loss control techniques, redundant controls and safety
mechanisms, double and triple containment of tanks and flow tubes, emergency response plans,
and effective training of employees. The Division will continue to seek to implement these
measures.
IV-1

ADMINISTRATIVE DIVISION
The Administrative Division is responsible for procuring the insurance policies above the County’s
self-insured retention, providing certificates of insurance to County departments, preparing the
annual user charges for services, preparing the annual budget and financial statements for the Trust,
and providing administrative support to the other divisions within the department. Included in this
report is a comparison of the assets and liabilities of the Trust over a three-year period, the trend of
the current insurance market, a budget summary, and the financial statements through fiscal year
ended June 30, 2007.
Self-Insured Trust Fund
Combined Balance Sheet Comparison
FY04-05, FY05-06, and FY06-07

Assets
Liabilities
Net assets (deficit)

FY04-05
$39,013,788
$51,716,639
($12,702,851)

FY05-06
$36,624,674
$57,458,078
($20,833,404)

FY06-07
$33,194,501
$59,207,749
($26,013,248)

During the FY04-05 through FY06-07 period, the Trust’s assets decreased $5,819,287, or 14.92%,
from $39,013,788 to $33,194,501. During the same period, the Trust’s liabilities increased
$7,491,110, or 14.48%, from $51,716,639 to $59,207,749. Net assets (deficits) are a result of a
spend down of the self-insured trust fund in a prior period, where user departments were only
charged for administrative costs while claims and insurance were still being paid by Risk
Management on behalf of these user departments. FY06-07 balance sheet details are provided in the
financial section. The Trust began billing user departments for the full costs of claims and insurance
in FY99-00.
Insurance Policies
Risk Management continues to analyze current insurance market trends. It is expected that
insurance premiums in all lines of coverage will increase somewhat, but the “hard” market of the last
few years may be abating. It is projected that potential increases in annual premium costs will not be
as great as in the past years. Risk Management will continue working closely with our insurance
broker to aggressively pursue reasonable insurance coverages to protect Maricopa County.
At the close of this fiscal year, the County’s major insurance policies are as follows:
Coverage

Policy Period

Limits

Deductible/SIR

General Liability
(Excess liability)

3-1-07/3-1-08

$5 million
$25 million

$5 million SIR

Medical Malpractice

12-4-06/12-4-07

$25 million

$5 million SIR

V-1

Workers’ Compensation

7-1-06/7-1-07

$25 million

$2 million SIR

Property Damage

7-1-06/7-1-07

$300 million

$100,000 per occ.

Budget Summary
The expenditure budget for the Risk Management Department for FY06-07 was $32,401,770. Of
this amount, $1,576,898 was for personnel costs, $273,617 was for supplies and services, $9,000
was for capital equipment and $30,542,255 was for insurance, legal, and claims and claims related
expenditures. On a percentage basis, 94.26% of Risk Management’s budget is for insurance, legal,
and claims and claim related expenditures.
The revenue budget for the Risk Management Department for FY06-07 was $26,750,000. Of this
amount, $26,000,000 was from user charges and $750,000 was from interest earnings. On a
percentage basis, 97.20% of the revenue is from user charges. These user charges are based on
actuarially estimated claims payments and insurance projections for what the Risk Management
Department will pay out on behalf of County departments.
Financial Statements
The financial statements presented in this section have been audited by the State of Arizona, Office
of the Auditor General, and are included in the Maricopa County Comprehensive Annual Financial
Report (CAFR) and the Risk Management and Employee Benefits Trust Report on Audit of
Financial Statements for FY06-07.
The actual expenditures for the Risk Management Department for FY06-07 were $33,056,364. Of
this amount, $1,532,684 was for personnel costs, $266,832 was for supplies and services, $9,975
was for capital equipment and $31,246,873 was for insurance, legal, and claims and claims related
expenditures. On a percentage basis, 94.53% of Risk Management’s actual expenditures are for
insurance, legal, and claims and claims related expenditures.
The actual revenue for the Risk Management Department for FY06-07 was $27,876,520. Of this
amount, $26,000,000 was from user charges, $387,373 was from other income, and $1,489,147 was
from interest earnings. On a percentage basis, 93.27% of the revenue was from user charges.

V-2

MARICOPA COUNTY
RISK MANAGEMENT AND EMPLOYEE BENEFITS TRUST FUNDS
Statements of Net Assets—Internal Service Funds
June 30, 2007
Risk
Management
Assets
Current assets:
Cash and cash equivalentsRisk management
Environmental insurance claims recovery
Employee benefits
Interest receivable
Accounts receivable
Prepaid insurance
Total current assets
Noncurrent assets:
Machinery and equipment
Less: accumulated depreciation
Total noncurrent assets
Total assets

Employee
Benefits

$ 30,975,377
386,534

1,617,304
33,183,544

$ 44,374,517
273,331
1,136,651
238,215
46,022,714

86,951
75,994
10,957
33,194,501

46,022,714

1,332,075
145,655
21,717,037
23,194,767

7,429,019
145,894
2,206,068
9,780,981

36,012,982
36,012,982
59,207,749

9,780,981

204,329

Liabilities
Current liabilities:
Accounts payable
Employee compensation payable
RBUC and IBNR claims
Total current liabilities
Noncurrent liabilities:
RBUC and IBNR claims
Total noncurrent liabilities
Total liabilities
Net Assets
Invested in capital assets
Unrestricted (deficit)
Total net assets (deficit)

10,957
(26,024,205)
$ (26,013,248)

See accompanying notes to financial statements.
V-3

36,241,733
$ 36,241,733

MARICOPA COUNTY
RISK MANAGEMENT AND EMPLOYEE BENEFITS TRUST FUNDS
Statements of Revenues, Expenses, and
Changes in Fund Net Assets—Internal Service Funds
Year Ended June 30, 2007
Risk
Management
Operating revenues:
Charges for services
County and employee premiums
Other income
Total operating revenues
Operating expenses:
Personal services
Supplies and services
Actuary fees
Consulting and management fees
Brokers' fees
Claims administration service fees
Legal expenses
Workers' compensation taxes
Claims and insurance:
Auto liability claims paid
Auto liability RBUC and IBNR claims increase in estimate
Total auto liability
General liability claims paid
General liability RBUC and IBNR claims increase in estimate
Total general liability
Workers' compensation claims paid
Workers' compensation RBUC and IBNR claims increase in estimate
Total workers' compensation
Medical malpractice claims paid
Medical malpractice RBUC and IBNR claims decrease in estimate
Total medical malpractice
Auto physical damage claims paid
Auto physical damage RBUC increase in estimate
Total auto physical damage
Property claims paid
Property claims RBUC decrease in estimate
Total property
Pharmacy claims paid
Pharmacy IBNR claims decrease in estimate
Total pharmacy
Medical claims paid
Medical IBNR claims decrease in estimate
Total medical

See accompanying notes to financial statements.
V-4

$

Employee
Benefits

26,000,000
387,373
26,387,373
1,532,684
276,807
42,253
284,036
145,000
556,856
8,407,981
526,586

$ 23,269,666
57,286
23,326,952
145,894

654,235

1,275,627
1,340,287
2,615,914
4,072,737
1,700,600
5,773,337
3,756,153
5,279
3,761,432
4,242,501
(1,059,466)
3,183,035
607,887
64,284
672,171
561,907
(237,358)
324,549
11,612,603
(355,917)
11,256,686
1,351,618
(257,000)
1,094,618

(Continued)

MARICOPA COUNTY
RISK MANAGEMENT AND EMPLOYEE BENEFITS TRUST FUNDS
Statements of Revenues, Expenses, and
Changes in Fund Net Assets—Internal Service Funds
Year Ended June 30, 2007
(Continued)
Risk
Management
Dental claims paid
Dental IBNR claims increase in estimate
Total dental
Short-term disability claims paid
Short-term disability IBNR claims increase in estimate
Total short-term disability
Wellness incentives paid
Total wellness
External prosthetics appliances claims paid
Total general medical
Unemployment claims
General liability insurance premiums
Workers' compensation insurance premiums
Crime insurance premiums
Property insurance premiums
Malpractice insurance premiums
Stop loss insurance premiums
Depreciation
Total operating expenses

$

25,100
16,848,226

(6,668,991)

6,478,726

1,489,147
1,489,147

1,603,022
1,603,022

(5,179,844)

8,081,748

(20,833,404)

28,159,985

$ (26,013,248)

$ 36,241,733

Nonoperating revenues:
Investment income
Total nonoperating revenues
Increase (decrease ) in net assets
Total net assets (deficit), July 1, 2006, as restated

See accompanying notes to financial statements.
V-5

633,685
1,406,175
474,011
31,291
774,552
1,622,259
11,750
33,056,364

Operating income (loss)

Total net assets (deficit), June 30, 2007

Employee
Benefits
$ 1,678,024
11,000
1,689,024
1,797,928
36,000
1,833,928
139,309
139,309
9,432
9,432

MARICOPA COUNTY
RISK MANAGEMENT AND EMPLOYEE BENEFITS TRUST FUNDS
Statements of Cash Flows—Internal Service Funds
Year Ended June 30, 2007

Cash flows from operating activities:
Receipts from other funds
Other receipts
Payments for fees, supplies, and services
Payments for insurance claims
Payments for insurance premiums
Payments to employees
Net cash provided by (used for) operating activities
Cash flows from investing activities:
Interest received on investments
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents, July 1, 2006
Cash and cash equivalents, June 30, 2007
Reconciliation of operating income (loss) to net cash
provided by (used for) operating activities:
Operating income (loss)
Adjustments to reconcile operating income (loss) to net cash
provided by (used for) operating activities:
Depreciation
Net change in RBUC and IBNR claims, noncurrent portion
Changes in assets and liabilities:
Increase in:
Accounts payable
Employee compensation payable
Decrease in:
Accounts receivable
Prepaid insurance
Accounts payable
RBUC and IBNR claims, current portion
Net cash provided by (used for) operating activities

Risk
Management

Employee
Benefits

$ 26,000,000
387,373
(10,321,053)
(15,150,497)
(4,174,875)
(1,515,105)
(4,774,157)

$ 24,243,653
57,286
(654,235)
(9,697,942)
(9,011)

1,479,785

1,474,277

(3,294,372)

15,414,028

34,656,283

28,960,489

$31,361,911

$ 44,374,517

$ (6,668,991)

$ 6,478,726

11,750
3,164,708

17,579

133,413
(81,534)
(1,351,082)
$ (4,774,157)

See accompanying notes to financial statements.
V-6

13,939,751

6,890,972
145,894
973,987
16,089
(565,917)
$ 13,939,751

MARICOPA COUNTY
RISK MANAGEMENT TRUST FUND
Statements of Revenues, Expenses, and
Changes in Fund Net Assets—Internal Service Fund
Budget and Actual
Year Ended June 30, 2007
Budget
Operating revenues:
Charges for services
Other income
Total operating revenues

$ 26,000,000
26,000,000

Operating expenses:
Personal services
Supplies and services
Accounting and auditing fees
Actuary fees
Consulting and management fees
Brokers' fees
Claims administration service fees
Legal expenses
Workers' compensation taxes
Total auto liability
Total general liability
Total workers' compensation
Total medical malpractice
Total auto physical damage
Total property
Unemployment claims
General liability insurance premiums
Workers' compensation insurance premiums
Crime insurance premiums
Property insurance premiums
Malpractice insurance premiums
Depreciation
Total operating expenses

1,576,898
282,617
13,000
48,000
360,000
145,000
400,000
9,711,767
450,000
1,460,187
4,901,831
4,467,802
1,466,910
551,583
240,655
800,000
1,750,000
491,519
33,000
926,000
2,325,000
32,401,770

Operating loss

Actual
$

26,000,000
387,373
26,387,373
1,532,684
276,807
42,253
284,036
145,000
556,856
8,407,981
526,586
2,615,914
5,773,337
3,761,432
3,183,035
672,171
324,549
633,685
1,406,175
474,011
31,291
774,552
1,622,259
11,750
33,056,364

Variance
$

0
387,373
387,373
(44,214)
(5,811)
(13,000)
(5,747)
(75,964)
0
156,856
(1,303,786)
76,586
1,155,727
871,506
(706,370)
1,716,125
120,588
83,894
(166,315)
(343,825)
(17,508)
(1,709)
(151,448)
(702,742)
11,750
654,595

(6,668,991)

Nonoperating revenues:
Investment income
Total nonoperating revenues

750,000
750,000

1,489,147
1,489,147

Decrease in net assets

(5,179,844)

Total net deficit, July 1, 2006

(20,833,404)

Total net deficit, June 30, 2007

$ (26,013,248)

See accompanying notes to financial statements.

V-7

739,147
739,147

MARICOPA COUNTY
RISK MANAGEMENT AND EMPLOYEE BENEFITS TRUST FUNDS
Notes to Financial Statements
June 30, 2007

NOTE 1 - Summary of Significant Accounting Policies
The County, in the exercise of the authority granted by Arizona Revised Statutes (A.R.S.)
§11-981, has established a trust fund and declares itself self-insured. For financial statement
presentation purposes, the Self-insured Trust Fund is reported as Risk Management and
Employee Benefits Trust Funds (Funds) and all monies held in these Funds are considered
unrestricted. The Funds’ financial statements are prepared in conformity with U.S. generally
accepted accounting principles applicable to governmental units adopted by the
Governmental Accounting Standards Board (GASB). The Maricopa County Comprehensive
Annual Financial Report for the year ended June 30, 2007, will report the Funds as
governmental activities on the government-wide financial statements since they
predominantly service the County’s governmental funds. A summary of the Funds’ more
significant accounting policies follows.
A.

Reporting Entity

The Funds are accounted for as internal service funds of Maricopa County, Arizona, under
the direction of an administrator appointed by the County Board of Supervisors. In addition,
the Funds are administered by no less than six joint trustees, all of whom shall be citizens of
the United States of America and residents of Maricopa County. The County Board of
Supervisors also appoints the trustees. However, the ultimate financial accountability for the
Funds remains with the County. The County is responsible for the management and
operations of the financing of the uninsured risks of loss related to torts; theft of, damage to,
and destruction of assets; errors and omissions; injuries to employees; natural disasters; and
for certain health benefits (pharmacy, medical, dental, short-term disability, medical
incentives, and wellness incentives) to eligible employees and their dependents.
B.

Fund Accounting

The Funds’ accounts are maintained in accordance with the principles of fund accounting to
ensure that limitations and restrictions on the Funds’ available resources are observed. The
principles of fund accounting require that resources be classified for accounting and
reporting purposes into funds in accordance with the activities or objectives specified for
those resources. Each fund is considered a separate accounting entity, and its operations are
accounted for in a separate set of self-balancing accounts that comprises its assets, liabilities,
net assets, revenues, and expenses.
The Funds’ financial transactions are recorded and reported as internal service funds since
their operations are financed and operated in a manner similar to private business enterprises.

V-8

MARICOPA COUNTY
RISK MANAGEMENT AND EMPLOYEE BENEFITS TRUST FUNDS
Notes to Financial Statements
June 30, 2007

The intent of the County Board of Supervisors is that the costs (expenses, including
depreciation) of providing goods or services to other departments within the County on a
continuing basis be financed or recovered primarily through user charges.
C.

Basis of Presentation and Accounting

The financial statements include statements of net assets; statements of revenues, expenses,
and changes in fund net assets; and statements of cash flows.
The statements of net assets provide information about the assets, liabilities, and net assets of
the Funds at the end of the year. Assets and liabilities are classified as either current or
noncurrent. Net assets are classified according to the availability of assets to satisfy the
Funds’ obligations. Invested in capital assets represents the value of capital assets, net of
accumulated depreciation. Unrestricted net assets represent the balance of monies held in the
Funds.
The statements of revenues, expenses, and changes in fund net assets provide information
about the Funds’ financial activities during the year. Revenues and expenses are classified as
either operating or nonoperating, and all changes in net assets are reported. Generally,
charges for services and premiums are considered to be operating revenues. Other revenues
such as investment income are not generated from operations and are considered to be
nonoperating revenues. The cost of services, administrative expenses, and depreciation on
capital assets are considered to be operating expenses.
The statements of cash flows provide information about the Funds’ sources and uses of cash
and cash equivalents during the year. Increases and decreases in cash and cash equivalents
are classified as either operating, noncapital financing, capital and related financing, or
investing.
Basis of accounting relates to the timing of the measurements made, regardless of the
measurement focus applied, and determines when revenues and expenses are recognized in
the accounts and reported in the financial statements. The financial statements of the Funds
are presented on the accrual basis of accounting using the economic resources measurement
focus. Revenues are recorded when earned and expenses are recorded at the time liabilities
are incurred, regardless of when the related cash flows take place.
The Funds apply only those applicable Financial Accounting Standards Board Statements
and Interpretations issued on or before November 30, 1989, Accounting Principles Board
Opinions, and Accounting Research Bulletins, unless those pronouncements conflict with
GASB pronouncements. The Funds have chosen the option not to follow FASB Statements
and Interpretations issued after November 30, 1989.
V-9

MARICOPA COUNTY
RISK MANAGEMENT AND EMPLOYEE BENEFITS TRUST FUNDS
Notes to Financial Statements
June 30, 2007

D.

Cash and Cash Equivalents

For purposes of the statements of cash flows, the Funds consider cash on hand, demand
deposits, cash on deposit with the County Treasurer, and only those highly liquid
investments with a maturity of 3 months or less when purchased to be cash equivalents.
E.

Machinery and Equipment

Machinery and equipment are capitalized at cost. Depreciation of machinery and equipment
is charged as an expense against operations. These assets are depreciated over their
estimated useful lives using the straight-line method. The estimated useful lives of
machinery and equipment range from 3 to 10 years.
F.

Employee Compensation Payable

Compensated absences consist of vacation leave and a calculated amount of sick leave
earned by employees based on services already rendered. Employees may accumulate up to
240 hours of vacation leave, but any vacation hours in excess of the maximum amount that
are unused at calendar year-end convert to sick leave. Upon termination of employment, all
unused vacation benefits are paid to employees. Accordingly, vacation benefits are accrued
as a liability in the financial statements.
Employees may accumulate an unlimited number of sick leave hours. Generally, sick leave
benefits provide for ordinary sick pay and are cumulative but are forfeited upon termination
of employment. Because sick leave benefits do not vest with employees, a liability for sick
leave benefits is not accrued in the financial statements. However, upon retirement, County
employees with accumulated sick leave in excess of 1,000 hours are entitled to a $10,000
nontaxable investment in a Post Employment Health Plan established pursuant to Internal
Revenue Code §501(c)(9). The obligations vested at June 30, 2007, under this policy are
accrued as a liability.
Compensated absences are substantially paid within one year from fiscal year-end and,
therefore, are reported as a current liability.
NOTE 2 - Beginning Balance Restated
On July 1, 2006, Maricopa County restated the Employee Benefits Trust Fund’s net assets
balance for corrections pertaining to medical incentives payable reported as part of RBUC
and IBNR claims liability, current portion, in error. These liabilities represented estimated
incentives payable to the County’s health care provider which were not due and payable at
June 30, 2006.
V-10

MARICOPA COUNTY
RISK MANAGEMENT AND EMPLOYEE BENEFITS TRUST FUNDS
Notes to Financial Statements
June 30, 2007

Net assets as of June 30, 2006, as previously reported
Correction of error
Net assets as of July 1, 2006, as restated

Employee
Benefits
Trust Fund
$27,559,985
600,000
$28,159,985

NOTE 3 - Deposits and Investments
Arizona Revised Statutes (A.R.S.) authorize the Funds to invest public monies in the State
Treasurer’s investment pool; obligations issued or guaranteed by the United States or any of
the senior debt of its agencies, sponsored agencies, corporations, sponsored corporations, or
instrumentalities; specified state and local government bonds; interest earning investments
such as savings accounts, certificates of deposit, and repurchase agreements in eligible
depositories; and specified commercial paper, bonds, debentures, and notes issued by
corporations organized and doing business in the United States. In addition, the County
Treasurer may invest trust funds in fixed income securities of corporations doing business in
the United States or District of Columbia.
Credit risk
Statutes have the following requirements for credit risk:
1. Commercial paper must be rated P1 by Moody’s investors service or A1 or better by
Standard and Poor’s rating service.
2. Corporate bonds, debentures, and notes must be rated A or better by Moody’s investors
service or Standard and Poor’s rating service.
3. Fixed income securities must carry one of the two highest ratings by Moody’s investors
service and Standard and Poor’s rating service. If only one of the above-mentioned
services rates the security, it must carry the highest rating of that service.
Custodial credit risk
Statutes require collateral for demand deposits, certificates of deposit, and repurchase
agreements at 101 percent of all deposits not covered by federal depository insurance.
Interest rate risk
Statutes require that public monies invested in securities and deposits have a maximum
maturity of 5 years and that public operating fund monies invested in securities and deposits
have a maximum maturity of 3 years. Investments in repurchase agreements must have a
maximum maturity of 180 days.
V-11

MARICOPA COUNTY
RISK MANAGEMENT AND EMPLOYEE BENEFITS TRUST FUNDS
Notes to Financial Statements
June 30, 2007

Deposits—At June 30, 2007, the carrying amount of the Funds’ deposits was $3,327,456,
and the bank balance was $3,335,514. The Funds follow the County’s policies requiring
collateralization of all deposits by at least 101% of the deposits not covered by depository
insurance. At a minimum, the collateral is to be held by the pledging financial institution or
its agent, but does not have to be held in the County’s name.
At June 30, 2007, $1,282,232 of the Funds’ bank balance was uninsured and uncollaterized.
The deposits pertain totally to the Employee Benefits Trust Fund.
Investments—The Funds’ investments at June 30, 2007, consisted of monies invested in the
Maricopa County Treasurer’s Investment Pool. The Funds’ investments in the pool represent
a portion of the County Treasurer’s pool portfolio. There is no oversight provided for the
County Treasurer’s investment pool, and the pool’s structure does not provide for shares.
The Funds’ portion in the pool is not identified with specific investments.
Credit Risk—The Funds follow the County’s policy to preserve the principal value and the
interest income of an investment. The County can invest in obligations issued or guaranteed
by the United States or any of the senior debt of its agencies, sponsored agencies,
corporations, or instrumentalities. The County can also invest in commercial paper and
corporate bonds with ratings that meet the statutory requirements specified above. At
June 30, 2007, the Funds’ investments consisted of monies invested in the Maricopa County
Treasurer’s Investment Pool which is unrated.
Interest rate risk—It is the County’s policy to hold investments to maturity, where practical,
and avoid any loss on investments resulting from an early sale or retirement of an
investment. Additionally, securities should be invested for a shorter duration, where
applicable. At June 30, 2007, the Funds had investments of $72,408,872 in the Maricopa
County Treasurer’s Investment Pool with a weighted average maturity of 478 days.
A reconciliation of cash, deposits, and investments to amounts shown on the Statements of
Net Assets follows:
Cash, deposits, and investments:
Cash on hand
Amount of deposits
County Treasurer’s Investment Pool
Total

V-12

$

100
3,327,456
72,408,872
$75,736,428

MARICOPA COUNTY
RISK MANAGEMENT AND EMPLOYEE BENEFITS TRUST FUNDS
Notes to Financial Statements
June 30, 2007

NOTE 4 - Liabilities for Unpaid Claims
The Funds provide for claims liabilities based on estimates of the ultimate cost of claims,
including future claims adjustment expenses, that have been reported but unpaid (RBUC),
and of claims that have been incurred but not reported (IBNR).
The County is liable for any single claim up to the insurance deductible or self-insurance
retention (SIR), whichever is applicable, and the excess over insurance limits.
The following insurance deductibles, self-insurance retentions (SIR), and insurance limits
were in effect during fiscal year 2006-07:
Policy Type
General and auto liability
Excess general and auto liability
Property/inland marine
Boiler and machinery
Earthquake
Flood zones except A and V
Flood zones A and V
Difference in conditions
Employee dishonesty
Faithful performance of duty
Theft and robbery
Computer and wire transfer
fraud
Workers’ compensation
Employer’s liability
Medical malpractice
Excess medical malpractice

Deductible

SIR
$

$

5,000,000

100,000
100,000
100,000
500,000
500,000
100,000
100,000
10,000
100,000
2,000,000
5,000,000

Limit
$

5,000,000
25,000,000
300,000,000
50,000,000
50,000,000
25,000,000
10,000,000
10,000,000
10,000,000
1,000,000
1,000,000
10,000,000
25,000,000
2,000,000
15,000,000
10,000,000

Settled claims have not exceeded the above commercial insurance coverage limits over the
past 3 years.
Risk Management Trust Fund
Liabilities for unpaid claims are estimates of the ultimate cost of claims that include the
insurance deductible, the SIR, and the excess over insurance limits. The estimates are
determined by an independent actuary using the following actuarial methods: reported loss
development, paid loss development, Bornhuetter-Ferguson reported loss and paid loss,
frequency times severity, expected loss, incremental paid-workers’ compensation, paid
V-13

MARICOPA COUNTY
RISK MANAGEMENT AND EMPLOYEE BENEFITS TRUST FUNDS
Notes to Financial Statements
June 30, 2007

allocated loss adjustment expense to paid loss development-automobile liability, and tail
liability for medical malpractice. Total liabilities are equal to the sum of:
1. Reported but unpaid claims (RBUC), which represent the estimated liability on reported
claims established by the Risk Management department and
2. Incurred but not reported (IBNR) reserves, which include known loss events that are
expected to become claims and expected future development on claims already reported.
Therefore, IBNR is largely an estimate of loss and claim adjustment expenses associated
with future likely claims activity based on historical actual results that establish a reliable
pattern.
Accrued actuarial liabilities are based on a discounted 55 percent confidence level assuming
a 4.50 percent annual rate of return on investments.
The total liabilities reported at June 30, 2007, categorized by insurable area follow:

Auto liability
General liability
Workers’ compensation
Medical malpractice
Auto physical damage
Property
Total

Total Liabilities
$ 2,140,022
32,180,129
9,707,098
13,094,200
289,975
318,595
$57,730,019

The total estimates of unpaid claim liabilities of $57,730,019 at June 30, 2007, increased by
$1,813,626 from last year’s balance of $55,916,393. The areas that increased were general
liability and auto liability.
Changes in the liabilities for unpaid auto, general, workers’ compensation, medical
malpractice, auto physical damage, and property claims follow:

2004-05
2005-06
2006-07

Balance
July 1

Current-Year
Claims and
Changes in
Estimates

Claims
Payments

Balance
June 30

$42,532,613
50,490,551
55,916,393

$15,923,337
17,605,701
16,330,438

$(7,965,399)
(12,179,859)
(14,516,812)

$50,490,551
55,916,393
57,730,019

V-14

MARICOPA COUNTY
RISK MANAGEMENT AND EMPLOYEE BENEFITS TRUST FUNDS
Notes to Financial Statements
June 30, 2007

Of these liabilities, $21,717,037 were actuarially estimated to be paid within the next 12
months.
Employee Benefits Trust Fund
The liability for pharmacy (Coinsurance Plan), medical, dental, and short-term disability
claims as shown below is based on the fiscal year 2006-07 actuarial reports. The Consumer
Choice Plan portion of the liability for pharmacy is based on the unused portion of the
members’ pharmacy accounts administered by Walgreens Health Initiatives.
Accrued liabilities at June 30, 2007, for each insurable area follow:
Pharmacy
Medical
Dental
Short-term disability
Total

$1,327,068
338,000
278,000
263,000
$2,206,068

Changes in the liabilities for unpaid pharmacy, medical, dental, and short-term disability
claims follow:

2004-05
2005-06
2006-07

Balance
July 1
as restated

Current-Year
Claims and
Changes in
Estimates

$5,139,150
4,080,935
2,771,985

$33,271,440
26,446,873
16,022,997

Claims
Payments

Balance
June 30

$(34,329,655)
(27,155,823)
(16,588,914)

$4,080,935
3,371,985
2,206,068

It is estimated that the June 30, 2007, liabilities balance of $2,206,068 will be paid within the
next 12 months.
NOTE 5 - Net Assets Deficit
The County Board of Supervisors elected not to fund the Risk Management Trust Fund’s
unpaid claims in fiscal years 1995-96 through 1998-99. Consequently, the Risk Management
Trust Fund only billed user departments for operating costs and administrative expenses for
those years. This resulted in a total net assets deficit of $23,321,519 at June 30, 1999.
Starting July 1, 1999, the Risk Management Trust Fund implemented a funding plan that
V-15

MARICOPA COUNTY
RISK MANAGEMENT AND EMPLOYEE BENEFITS TRUST FUNDS
Notes to Financial Statements
June 30, 2007

calls for the fiscal year ending cash balance to equal the next year’s estimated claims and
claims related expenses. As of June 30, 2007, the total net assets deficit was $26,013,248.
This is primarily due to the Risk Management Trust Fund not being funded for noncurrent
accrued claim liabilities. Accrued claim liabilities of the Risk Management Trust Fund are
not considered when determining funding for each fiscal year.
NOTE 6 - Letter of Credit
On July 1, 2006, the County renewed its workers’ compensation insurance with a selfinsured retention of $2,000,000. As a result, the Industrial Commission of Arizona required
the County to secure an irrevocable letter of credit in the amount of $9.8 million with a
financial institution to cover unfunded workers’ compensation claims. During fiscal year
2006-07, the letter of credit had not been drawn upon. The letter of credit was renewed to
July 1, 2008 for $5.9 million.
NOTE 7 - Retirement Plan
Plan Description—The Risk Management Trust Fund contributes to a cost-sharing multipleemployer defined benefit pension plan administered by the Arizona State Retirement System
(ASRS). Benefits are established by state statute and generally provide retirement, death,
long-term disability, survivor, and health insurance premium benefits. The System is
governed by the Arizona State Retirement System Board according to the provisions of
A.R.S. Title 38, Chapter 5, Article 2.
The System issues a comprehensive annual financial report that includes financial statements
and required supplementary information. The most recent report may be obtained by writing
the ASRS, 3300 North Central Avenue, P.O. Box 33910, Phoenix, AZ 85067-3910 or by
calling (602) 240-2000 or (800) 621-3778.
Funding Policy—The Arizona State Legislature establishes and may amend active plan
members’ and the Risk Management Trust Fund’s contribution rates. For the year ended
June 30, 2007, active plan members and the Risk Management Trust Fund were each
required by statute to contribute at the actuarially determined rate of 9.1 percent (8.6 percent
retirement and 0.5 percent long-term disability) of the members’ annual covered payroll.
The Risk Management Trust Fund’s contributions to the System for the years ended June 30,
2007, 2006, and 2005 were $107,105, $79,608, and $56,628, respectively, which were equal
to the required contributions for the year.

V-16

MARICOPA COUNTY
RISK MANAGEMENT AND EMPLOYEE BENEFITS TRUST FUNDS
Notes to Financial Statements
June 30, 2007

NOTE 8 - Subsequent Events
On July 1, 2007, the County became self-insured for medical, behavioral health, and vision
benefits for all County employees. Prior to this date, with the exception of the medical
Health Select Plan, these benefits were fully insured through purchased commercial
insurance.

V-17

TOTAL COST SUMMARY
FY04-05 TO FY06-07

$9,000,000

Auto Liability Paid
Auto Liability Reserved
Auto Physical Damage Paid
Auto Physical Damage Reserved
General Liability Paid
General Liability Reserved

Medical Malpractice Paid
Medical Malpractice Reserved
Property Damage Paid
Property Damage Reserved
Workers’ Compensation Paid
Workers’ Compensation Reserved

$8,000,000
$7,000,000
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$0

FY04-05

FY05-06

Auto Liability

Auto Physical
Damage

$275,074

$463,459

$3,140,938

$1,007,613

$135,417

$2,869,817

$7,892,319

Open Reserves

$75,465

$2,912

$5,368,936

$2,974,934

$0

$196,643

$8,618,889

5

$350,540

$466,371

$8,509,874

$3,982,547

$135,417

$3,066,459 $16,511,208

$1,218,358

$769,061

$1,801,354

$1,158,658

$172,580

$3,817,891

$8,937,903

$244,377

$36,015

$3,060,090

$1,102,799

$7,000

$814,324

$5,264,606

$1,462,735

$805,076

$4,861,445

$2,261,457

$179,580

$4,632,215 $14,202,508

$165,323

$449,082

$82,429

$966

$320,082

$1,753,436

$2,771,318

$9,744

$165,127

$865,220

$193,834

$53,900

$1,804,057

$3,091,882

$175,066

$614,210

$947,649

$194,800

$373,982

$3,557,493

$5,863,201

$ Paid
FY 04-05 Total Incurred
$ Paid
Open Reserves
FY 05-06 Total Incurred5
$ Paid
Open Reserves
FY 06-07 Total Incurred5

General
Liability

FY06-07

Medical
Malpractice

Workers’
Compensation

Property

Total

Notes: 1. Dollars paid listed above represents payments on claims by event date, not actual payment date, and does not include
RBNP or IBNR reserves. Due to lag time in resolution and payment of claims, the figures from FY04-05 give a truer
picture as these claims have had time to mature.
2. Number of claims paid represents the amount of claims for the year in which the event occurred.
3. Amounts as valued on June 30, 2007, as reported by the RiskMaster system except for Workers’ Compensation
amounts as valued on June 30, 2007, as reported by the Pinnacle system.
4. Unemployment not included.
5. Total Incurred = $ Paid plus Open Reserves, minus Total Recoveries.

VI-1

TOTAL CLAIMS SUMMARY TABLE
FY04-05 TO FY06-07
FY04-05
Department

# Claims

FY05-06

$ Paid

# Claims

FY06-07

$ Paid

# Claims

$ Paid

ADULT PROBATION

72

$156,990

62

$900,446

107

$107,434

AIR QUALITY

13

$3,890

5

$100

22

$20,399

ANIMAL CONTROL

81

$81,358

102

$158,794

120

$78,281

ASSESSOR

11

$33,361

12

$13,517

7

$592

CLERK OF SUPERIOR COURT

23

$31,839

19

$49,926

28

$13,052

9

$1,399

6

$2,100

0

$0

CORRECTIONAL HEALTH

57

$747,602

52

$1,006,889

46

$18,200

COUNTY ATTORNEY

46

$94,548

44

$69,487

43

$49,357

ELECTIONS

19

$8,540

2

$1,117

19

$78,106

ENVIRONMENTAL SERVICES

45

$198,457

68

$1,103,076

49

$14,955

EQUIPMENT SERVICES

10

$14,680

10

$28,766

10

$35,124

FACILITIES MANAGEMENT

43

$108,415

45

$151,413

36

$36,808

FLOOD CONTROL

33

$167,546

51

$56,433

44

$34,562

HUMAN SERVICES

75

$109,998

41

$135,796

50

$36,069

JUVENILE PROBATION

53

$81,911

65

$120,031

99

$141,740

311

$1,080,099

287

$1,053,392

385

$552,250

MEDICAL EXAMINER

19

$21,732

16

$65,803

20

$11,729

PARKS & RECREATION

30

$51,109

31

$40,858

21

$83,591

PLANNING AND DEVELOPMENT

16

$123,594

19

$10,096

19

$32,635

PUBLIC DEFENDER

13

$7,818

19

$59,587

12

$21,635

PUBLIC HEALTH

47

$194,187

59

$81,840

78

$39,788

1,192

$2,805,320

1,326

$2,844,549

933

$1,140,792

292

$1,609,131

204

$759,588

180

$141,498

31

$80,456

43

$103,243

60

$55,825

100

$78,339

110

$121,056

83

$26,895

2,641

$7,892,319

2,698

$8,937,903

2,471

$2,771,317

CONSTABLES

MARICOPA MEDICAL CENTER

SHERIFF
TRANSPORTATION
TRIAL COURTS
ALL OTHERS
TOTAL

Notes: 1. Dollars paid listed above represents payments on claims by event date, not actual payment date, and does not include
RBNP or IBNR reserves. Due to lag time in resolution and payment of claims, the figures from FY04-05 give a truer
picture as these claims have had time to mature.
2. Number of claims paid represents the amount of claims for the year in which the event occurred.
3. Amounts as valued on June 30, 2007, as reported by the RiskMaster system, the Advantage Financial System, or the
Pinnacle system.

VI-2

TOTAL NUMBER OF CLAIMS SUMMARY
FY04-05 TO FY06-07
1600
1400
1200
1000
800
600
400
200
0
FY04-05

Automobile Liability
Medical Malpractice

FY05-06

FY06-07

Auto Physical Damage
Property

General Liability
Workers' Compensation

FY04-05

FY05-06

FY06-07

Automobile Liability

116

105

95

Auto Physical Damage

525

519

543

General Liability

790

820

373

Medical Malpractice

56

59

19

Property

78

82

67

Workers' Compensation

1076

1113

1374

TOTAL

2641

2698

2471

Notes: 1. Number of claims paid represents the amount of claims for the year in which the event occurred.
2. Amounts as valued on June 30, 2007, as reported by the RiskMaster system except for Workers’ Compensation
amounts as valued on June 30, 2007, as reported by the Pinnacle System.
3. Unemployment not included.

VI-3

AUTO LIABILITY SUMMARY
FY04-05 TO FY06-07
FY04-05
Department

# Claims

FY05-06

$ Paid

# Claims

FY06-07

$ Paid

# Claims

$ Paid

ADULT PROBATION

3

$0

1

$2,230

1

$0

AIR QUALITY

2

$1,279

0

$0

3

$0

ANIMAL CONTROL

3

$14,173

5

$14,171

7

$12,680

CONSTABLES

1

$0

1

$2,100

0

$0

COUNTY ATTORNEY

1

$2,439

3

$16,071

0

$0

CLERK OF SUPERIOR COURT

0

$0

0

$0

3

$0

DEPT OF TRANSPORTATION

21

$34,614

9

$7,411

18

$11,728

ELECTIONS DEPARTMENT

6

$3,732

0

$0

1

$0

ENVIRONMENTAL SERVICES

5

$32,239

8

$1,017,120

4

$4,377

FACILITIES MANAGEMENT

2

$3,857

5

$9,198

2

$9,530

FLOOD CONTROL

4

$10,470

2

$854

0

$0

HUMAN SERVICES

6

$8,957

6

$13

2

$18,002

JUVENILE PROBATION

0

$0

0

$0

3

$0

MARICOPA MEDICAL CENTER

7

$41,769

4

$11,111

0

$0

MEDICAL EXAMINER

3

$14,741

0

$0

0

$0

PARKS & RECREATION

2

$4,970

2

$2,663

0

$0

PLANNING AND DEVELOPMENT

1

$2,521

4

$4,582

2

$10,996

PUBLIC HEALTH

1

$1,839

0

$0

0

$0

RISK MANAGEMENT

0

$0

5

$0

2

$451

SHERIFF

45

$95,963

49

$122,671

45

$95,066

SOLID WASTE MANAGEMENT

2

$74

0

$0

2

$2,492

TELECOMMUNICATIONS

1

$1,438

1

$8,162

0

$0

$1,218,357

95

$165,322

TOTALS

116

$275,075

105

Notes: 1. Dollars paid listed above represents payments on claims by event date, not actual payment date, and does not include
RBNP or IBNR reserves. Due to lag time in resolution and payment of claims, the figures from FY04-05 give a truer
picture as these claims have had time to mature.
2. Number of claims paid represents the amount of claims for the year in which the event occurred.
3. Amounts as valued on June 30, 2007, as reported by the RiskMaster system.

VI-4

AUTO PROPERTY DAMAGE SUMMARY
FY04-05 TO FY06-07
FY04-05
Department

# Claims

FY05-06

$ Paid

# Claims

FY06-07

$ Paid

# Claims

$ Paid

ADULT PROBATION

18

$38,827

18

$10,490

21

$36,248

AIR QUALITY

8

$2,611

3

$0

13

$19,054

ANIMAL CONTROL

15

$4,396

23

$6,960

36

$18,257

ASSESSOR

2

$0

3

$0

1

$0

CLERK OF SUPERIOR COURT

1

$1,644

1

$0

4

$0

CONSTABLES

7

$85

4

$0

0

$0

COUNTY ATTORNEY

13

$8,484

11

$5,786

6

$1,570

DEPT OF TRANSPORTATION

50

$81,701

56

$270,987

52

$18,535

ELECTIONS DEPARTMENT

7

$0

0

$0

8

$1,261

ENVIRONMENTAL SERVICES

27

$12,467

26

$37,200

23

$2,000

FACILITIES MANAGEMENT

11

$7,680

15

$14,497

10

$3,559

FLOOD CONTROL

11

$6,946

27

$32,183

26

$7,340

HUMAN SERVICES

27

$22,593

14

$37,130

18

$2,284

JUVENILE PROBATION

4

$3,188

3

$9,506

7

$3,911

LEGAL ADVOCATE

1

$180

0

$0

1

$0

LIBRARY DISTRICT

2

$326

1

$0

1

$0

MARICOPA MEDICAL CENTER

18

$8,726

9

$9,491

3

$0

MEDICAL EXAMINER

5

$1,938

0

$0

1

$982

PARKS & RECREATION

12

$2,693

14

$5,501

3

$1,175

PLANNING AND DEVELOPMENT

7

$15,026

11

$5,025

12

$21,639

PUBLIC HEALTH

11

$500

7

$494

8

$0

SHERIFF

260

$239,337

260

$312,735

277

$303,373

SOLID WASTE MANAGEMENT

4

$0

1

$8,656

4

$2,920

TELECOMMUNICATIONS

2

$427

3

$0

0

$0

ALL OTHERS

2

$3,685

9

$2,421

8

$4,975

TOTALS

525

$463,460

519

$769,062

543

$449,083

Notes: 1. Dollars paid listed above represents payments on claims by event date, not actual payment date, and does not include
RBNP or IBNR reserves. Due to lag time in resolution and payment of claims, the figures from FY04-05 give a truer
picture as these claims have had time to mature.
2. Number of claims paid represents the amount of claims for the year in which the event occurred.
3. Amounts as valued on June 30, 2007, as reported by the RiskMaster system.

VI-5

GENERAL LIABILITY SUMMARY
FY04-05 TO FY06-07
FY04-05
Department

# Claims

FY05-06

$ Paid

# Claims

FY06-07

$ Paid

# Claims

$ Paid

ADULT PROBATION

5

$0

6

$0

1

$0

AIR QUALITY

3

$0

0

$0

0

$0

ANIMAL CONTROL

16

$18,488

19

$719

17

$462

BOARD OF SUPERVISORS

1

$0

4

$437

1

$0

CORRECTIONAL HEALTH

4

$0

2

$0

3

$0

COUNTY ATTORNEY

6

$7,500

10

$12,960

14

$9,565

$1,311,501

104

$379,702

77

$2,422

DEPT OF TRANSPORTATION

170

ENVIRONMENTAL SERVICES

2

$135,074

2

$0

1

$0

FACILITIES MANAGEMENT

12

$39,553

12

$5,455

4

$1,668

FLOOD CONTROL

3

$0

4

$0

3

$0

HUMAN SERVICES

2

$0

3

$128

0

$0

JUSTICE COURTS

2

$0

4

$0

6

$0

LEGAL DEFENDER

1

$326

2

$0

1

$6,011

MARICOPA MEDICAL CENTER

29

$171,394

14

$23,588

18

$7,842

MATERIALS MANAGEMENT

4

$595

0

$0

0

$0

MEDICAL EXAMINER

3

$140

4

$37,920

2

$500

PARKS & RECREATION

3

$0

4

$1,580

5

$0

PLANNING AND DEVELOPMENT

2

$46,701

2

$0

0

$0

PUBLIC DEFENDER

6

$1,387

4

$1,414

3

$0

PUBLIC HEALTH

6

$1,397

10

$0

15

$0

RISK MANAGEMENT

1

$0

5

$0

9

$0

SHERIFF

493

$1,406,882

579

$1,334,247

173

$53,864

SUPERINTENDENT OF SCHOOLS

3

$0

4

$0

0

$0

SUPERIOR COURTS

4

$0

9

$296

9

$0

ALL OTHERS

9

$0

13

$2,908

11

$95

$3,140,938

820

$1,801,354

373

$82,429

TOTALS

790

Notes: 1. Dollars paid listed above represents payments on claims be event date, not actual payment date, and does not include
RBNP or IBNR reserves. Due to lag time in resolution and payment of claims, the figures from FY04-05 give a truer
picture as these claims have had time to mature.
2. Number of claims paid represents the amount of claims for the year in which the event occurred.
3. Amounts as valued on June 30, 2007, as reported by the RiskMaster system.

VI-6

MEDICAL MALPRACTICE SUMMARY
FY04-05 TO FY06-07
FY04-05
Department

# Claims

FY05-06

$ Paid

# Claims

FY06-07

$ Paid

# Claims

$ Paid

CORRECTIONAL HEALTH

30

$630,223

37

$994,094

13

$0

MARICOPA HEALTH PLAN

0

$0

2

$0

0

$0

MARICOPA MEDICAL CENTER

24

$377,390

20

$164,565

6

$966

PUBLIC HEALTH

2

$0

0

$0

0

$0

TOTALS

56

$1,007,613

59

$1,158,659

19

$ 966

Notes: 1. Dollars paid listed above represents payments on claims by event date, not actual payment date, and does not include
RBNP or IBNR reserves. Due to lag time in resolution and payment of claims, the figures from FY04-05 give a truer
picture as these claims have had time to mature.
2. Number of claims paid represents the amount of claims for the year in which the event occurred.
3. Amounts as valued on June 30, 2007, as reported by the RiskMaster system.

VI-7

PROPERTY DAMAGE SUMMARY
FY04-05 TO FY06-07
FY04-05
Department

# Claims

FY05-06

$ Paid

# Claims

FY06-07

$ Paid

# Claims

$ Paid

ADULT PROBATION

1

$625

0

$0

0

$0

AIR QUALITY

0

$0

1

$0

1

$0

ANIMAL CONTROL

5

$10,881

10

$0

7

$4,167

DEPT OF TRANSPORTATION

5

$5,711

9

$29,997

12

$46,736

ELECTIONS DEPARTMENT

0

$0

0

$0

3

$493

ENVIRONMENTAL SERVICES

5

$8,556

10

$11,451

4

$0

EQUIPMENT SERVICES

0

$0

3

$5,681

1

$3,297

FACILITIES MANAGEMENT

3

$1,975

1

$0

2

$711

FINANCE

0

$0

1

$0

0

$0

FLOOD CONTROL

4

$7,940

9

$12,043

5

$8,163

HUMAN SERVICES

5

$0

2

$0

1

$0

INTEGRATED CRIMINAL JUSTICE

0

$0

1

$5,116

0

$0

JUVENILE PROBATION

1

$0

2

$2,867

0

$0

MARICOPA MEDICAL CENTER

2

$8,072

5

$66,364

6

$163,934

PARKS & RECREATION

5

$24,297

4

$2,379

6

$74,182

PLANNING AND DEVELOPMENT

3

$36,351

0

$0

1

$0

PUBLIC HEALTH

8

$0

8

$1,717

4

$2,924

SHERIFF

28

$17,905

14

$34,964

12

$15,475

SOLID WASTE MANAGEMENT

0

$0

0

$0

1

$0

SUPERINTENDENT OF SCHOOLS

0

$0

1

$0

0

$0

SUPERIOR COURTS

2

$0

1

$0

0

$0

TELECOMMUNICATIONS

1

$13,104

0

$0

0

$0

TRIAL COURTS

0

$0

0

$0

1

$0

TOTALS

78

$135,417

82

$172,579

67

$320,082

Notes: 1. Dollars paid listed above represents payments on claims by event date, not actual payment date, and does not include
RBNP or IBNR reserves. Due to lag time in resolution and payment of claims, the figures from FY04-05 give a truer
picture as these claims have had time to mature.
2. Number of claims paid represents the amount of claims for the year in which the event occurred.
3. Amounts as valued on June 30, 2007, as reported by the RiskMaster system.

VI-8

WORKERS COMPENSATION SUMMARY
FY04-05 TO FY06-07
FY04-05
Department

# Claims

FY05-06

$ Paid

# Claims

FY06-07

$ Paid

# Claims

$ Paid

ADULT PROBATION

45

$117,538

37

$887,726

84

$71,186

ALTCS

7

$527

3

$435

0

$0

ANIMAL CONTROL SERVICES

42

$33,419

45

$136,944

53

$42,714

ASSESSOR

8

$33,361

8

$13,517

4

$592

CLERK OF SUPERIOR COURT

21

$30,195

18

$49,926

21

$13,052

CORRECTIONAL HEALTH

23

$117,378

13

$12,795

30

$18,200

COUNTY ATTORNEY

26

$76,125

20

$34,670

23

$38,222

ELECTIONS

5

$4,809

2

$1,117

6

$76,352

ENVIRONMENTAL SERVICES

6

$10,120

22

$37,305

17

$8,578

EQUIPMENT SERVICES

9

$14,680

7

$23,085

8

$31,827

FACILITIES MANAGEMENT

15

$55,350

12

$122,263

18

$21,339

FLOOD CONTROL DISTRICT

11

$142,190

9

$11,352

10

$19,059

HEALTH CARE MANDATES

8

$4,251

3

$5,138

2

$514

HUMAN SERVICES

35

$78,448

16

$98,524

29

$15,783

JUVENILE PROBATION

47

$78,724

59

$107,658

89

$137,829

MEDICAL EXAMINER

8

$4,913

12

$27,883

17

$10,248

231

$472,749

235

$778,274

352

$379,507

PARKS & RECREATION

8

$19,149

7

$28,735

7

$8,234

PUBLIC DEFENDER

7

$6,432

14

$58,173

7

$17,054

PUBLIC HEALTH

19

$190,452

34

$79,629

51

$36,865

SHERIFF

366

$1,045,233

424

$1,039,932

426

$673,015

TRANSPORTATION

46

$175,604

26

$71,491

21

$62,077

TRIAL COURTS

31

$80,456

41

$100,907

58

$55,825

ALL OTHERS

52

$77,713

46

$90,412

41

$15,363

MARICOPA MEDICAL CENTER

TOTALS

1,076

$2,869,816

1,113

$3,817,891

1,374

$1,753,435

Notes: 1. Dollars paid listed above represents payments on claims by event date, not actual payment date, and does not include
RBNP or IBNR reserves. Due to lag time in resolution and payment of claims, the figures from FY04-05 give a truer
picture as these claims have had time to mature.
2. Amounts as valued on June 30, 2007, as reported by the Pinnacle system.

VI-9

UNEMPLOYMENT LOSS SUMMARY
FY04-05 TO FY06-07

Department
ADULT PROBATION

FY04-05

FY05-06

FY06-07

$ Paid

$ Paid

$ Paid

$31,262

$11,044

$14,397

ALTCS

$7,326

$235,050

$116,190

ANIMAL CONTROL

$6,722

$16,446

$838

$10,051

$10,230

$20,536

CHIEF INFORMATION OFFICE

$7,420

$19

$3,327

CLERK OF SUPERIOR COURT

$32,444

$22,997

$36,726

CORRECTIONAL HEALTH

$25,812

$5,906

$9,008

COUNTY ATTORNEY

$10,393

$12,474

$4,957

ELECTIONS

$22,854

$8,495

$12,334

ENVIRONMENTAL SERVICES

$23,114

$19,404

$25,357

FACILITIES MANAGEMENT

$27,411

$15,262

$11,557

$6,940

$2,507

$6,766

$124,257

$120,580

$97,311

$4,080

$0

$0

$35,903

$29,213

$34,742

$6,197

$7,907

$3,661

$216,764

$97,311

$68,698

PUBLIC DEFENDER

$8,129

$15,469

$9,864

PUBLIC FIDUCIARY

$4,560

$7,044

$667

PUBLIC HEALTH

$25,879

$12,421

$18,989

SHERIFF

$53,402

$40,311

$49,756

$8,880

$8,299

$1,652

SUPERIOR COURT

$35,459

$33,348

$33,938

TRANSPORTATION

$17,132

$8,411

$2,331

ALL OTHERS

$23,692

$36,179

$50,082

$776,083

$776,327

$633,684

ASSESSOR

HOUSING
HUMAN SERVICES
INTEGRATED CRIMINAL JUSTICE
JUVENILE PROBATION
LEGAL DEFENDER
MARICOPA HEALTH SYSTEM

SOLID WASTE

TOTALS

Notes: 1. Dollars paid represents the amount paid for the fiscal year. There are no reserves for unemployment.
2. Amounts as valued on June 30, 2007, as reported by the Advantage Financial System.

VI-10